QUESTION ONE In public finance, it no longer suffices for analysts and institutions to focus solely on budget revenues and expendit

QUESTION ONE

In public finance, it no longer suffices for analysts and institutions to focus solely on budget revenues and expenditures. Recent history demonstrates that fiscal performance and, in turn, economic development can be seriously disrupted by the sudden, unexpected costs of hidden contingent liabilities and other unanticipated fiscal risks. During the second half of the 1990s, unreported contingent liabilities and related fiscal risks contributed to economic crises and disrupted growth in a number of developing countries, motivating stepped-up efforts world over to devise new concepts and tools for analyzing and managing public finance. In recent times, Zambia has not been spared. Required:

(a) Discuss at least five explicit contingent liabilities that have occurred over the last three decades in Zambia?

(b) Discuss at least five implicit contingent liabilities that have occurred over the last three decades in Zambia?

 (c) Discuss with justifiable reasons at least five of those risks that are likely to persist in the coming decade based on the current economic fundamentals?